Powers of registrar of co-operative society v Powers of Reserve bank of India

The dispute in these appeals arose in the background of the supersession of two Co-operative Banks in the State of Karnataka, one Grain Merchants Co-operative Bank and the other Kannika Parameshwari Co-operative Bank. The supersession of the Board of the Managing Committee was pursuant to a written requisition made by the Reserve Bank of India, under Section 30(5) of the Karnataka Co-operative Societies Act, 1959 which reads as follows:

(5) Notwithstanding anything contained in this Act, the Registrar shall, in the case of a co-operative bank, if so required in writing by the Reserve Bank of India in public interest or for preventing the affairs of the co - operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of the co-operative bank, by order in writing, remove the committee of that co-operative bank and appoint an administrator to manage the affairs of the co-operative bank for such period as may, from time to time, be specified by the Reserve Bank of India. Thus in terms of the above provision, the Registrar of the Cooperative Societies is bound to supersede the Managing Committee of the Co-operative Bank when a requisition is made by the Reserve Bank of India in writing.

General Manager R.B.I. Vs. N. Venkateshaiah & Ors.

[Civil Appeal No.........of 2016 @ Special Leave Petition (Civil) No. 30412 of 2010]

[Civil Appeal No.........of 2016 @ Special Leave Petition (Civil) No. 32134-32142 of 2010]

[Civil Appeal No.........of 2016 @ Special Leave Petition (Civil) No. 32143-32144 of 2010]

KURIAN, J.

Dated:2-2-2016

Citation:(2016)6 SCC266

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Whether circular issued by Reserve bank of India are binding on banks and financial institutions?

The Master Circular being issued under Section 35A of the Banking Regulation Act, 1949, has a binding effect on a bank or a financial institution. When a Master Circular has such binding effect to try and find out portions of it and that too crucial portions and hold that such portions are directory, would be against the intention of the legislature when the legislature prescribes that a Circular issued by the Reserve Bank of India under Section 35A of the Banking Regulation Act, 1949 is binding on a bank and financial institution governed by it.

Calcutta High Court

Kingfisher Airlines Limited & Ors vs Union Of India & Ors on 24 December, 2014

Author: Debangsu Basak

Citation;AIR 2015 (NOC)337 CAl

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Minors above 10 years can operate Bank Account:

Reserve Bank of India vide notification dated May 6, 2014 allowed minors above 10 years of age can be allowed to operate their savings bank account to operate independently. Minors can open saving/fixed/ recurring bank deposit account through his natural or legally appointed guardian. Banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subjected to certain safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.. As per the guidelines, minors after attaining majority are required to confirm the balance in his/her account The object for the same is to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts. [RBI/2013-14/581, DBOD.No.Leg.BC.108/09.07.005/2013-14]

Refer to the link below to read the notification http://bit.ly/1jRTgPb

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Online fraud- Court orders negligent bank and mobile service provider to pay compensation

The bank and the mobile service provider in their submissions made their best attempt to evade liability by manipulating the usage of technical and legal jargon to bury the substance of the argument. Both of them blankly maintained that they had done everything that was covered under the standards terms and conditions of the Customer Relationship form and the Corporate Internet Banking and Mobile Facility agreement. This was a rather obtuse argument considering that both of them failed to observe the very basic standards of care  of verification and monitoring prescribed while adding a new customer or the renewing the details of a former customer.

 In fact the very attempt by Vodafone to escape liability by stating that information that was being handled by them namely the call recorded data was not sensitive information prompted the court to expand the scope of section 43a of the information technology act which covers cases of date protection and fraud. The court simply stated that considering the extent of information that is handled by the service providers like the calls from various helplines, people’s personal details in messages etc, it was hard to believe that the nature of information they handled was not sensitive or not subject to exploitation. The court in its obiter cushioned the sentiment of helplessness faced by customers because of internet frauds. The court said that in countries like USA the banks while promoting mobile phone banking etc and various other technological advancements also insured their customers from the risk of cyber frauds. And maybe it was time that India also adopted such solutions rather than letting the excuse of impossibility of stopping episodes of cyber crimes become an easy defense for escaping liability.

BEFORE THE ADJUDICATING OFFICER

SH. RAJESH AGGARWAL,

PRINCIPAL SECRETARY, INFORMATION TECHNOLOGY,

GOVERNMENT OF MAHARASHTRA

Complaint No. 30 of 2013 dated 26th September 2013

IN THE MATTER OF

1. Sh. Sanjay Govind Dhande

2. Dr. (Smt.) Medha Sanjay Dhande

3. M/s Sango Consultants Pvt. Ltd.

................................. Complainants

Versus

1. Branch Manager, ICICI BANK, Audh Branch, Pune

2. Vodafone Store, Wakdewadi, Shivajinagar, Pune

3. Vodafone India Ltd., Corporate Office

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